What the under or over absorbed factory overhead cost

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Problem 1: A company has been using an overhead absorption rate based on direct labour cost. During the year, the company incurred N$400 000 and N$150 000, in actual conversion and direct labour costs, respectively. The budgeted manufacturing overhead rate used during the past year was 200% of direct labour cost. The under/over absorbed factory overhead cost for the period was?

Reference no: EM132738954

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